Bitcoin Prices Fall as Study Shows Lack of KYC Compliance in Cryptocurrency Exchanges

Bitcoin prices fell on Friday, with Ethereum and Ripple also experiencing a dip of more than 2%. The cryptocurrency market was in turmoil as Bitcoin traded at $7,637.8 on the Bitfinex exchange, down 1.1% over the previous 24 hours. Ethereum, the second largest cryptocurrency by market cap, lost 2.1% at $600.7 on the Bitfinex exchange, while Ripple’s XRP token was down 1.5% to $0.66799 on the Poloniex exchange. Litecoin also traded 2.2% lower at $119.79.

Adding to the chaos, a recent study revealed that more than two-thirds of cryptocurrency exchanges were not fully compliant with Know-Your-Customer (KYC) procedures. The study, conducted by P.A.ID Strategies, found that 68% of exchanges allowed users to trade without providing proper identification, only requiring a telephone number and email address.

In addition, a separate report indicated that approximately $1.1 billion worth of cryptocurrency was stolen in the first half of 2018. Cybersecurity strategist Rick McElroy highlighted the ease with which cybercrimes like ransomware can be committed, emphasizing that it is not just large groups behind these attacks.

Exchanges were a common target for attacks, with $530 million worth of cryptocurrency stolen from Coincheck in Japan and 17% of digital assets lost by South Korean exchange Youbit. The cryptocurrency market continues to face challenges as security breaches and compliance issues persist.

As investors navigate the volatile cryptocurrency market, the need for increased security measures and regulatory compliance becomes more apparent. Stay tuned for more updates on the latest developments in the world of digital currencies.